Key Highlights
- First quarter net bookings totaled $1.39 billion, declining 3% from the prior year while surpassing the $1.37 billion analyst forecast
- Net revenue increased 2% to reach $1.53 billion, exceeding the consensus estimate of $1.49 billion
- Company maintained FY2027 net bookings outlook of $8.0ā$8.2 billion, significantly below the Street’s $8.62 billion projection
- Console platform bookings surged 11% to $525.2 million; mobile segment declined 7% to $739.5 million
- Grand Theft Auto VI launches November 19, with pre-order availability beginning June 25
Shares of Take-Two Interactive declined approximately 2% following the release of first quarter results that exceeded revenue projections but included forward guidance disappointing to analysts.
Take-Two Interactive Software, Inc., TTWO
During the three-month period ending June 30, the gaming company reported net bookings of $1.39 billion, representing a 3% year-over-year decline while topping analyst projections. Total net revenue grew 2% to $1.53 billion, similarly exceeding Wall Street forecasts. Shares changed hands near $233 during Friday’s premarket session, following a 1% decline in Thursday’s regular trading. On a year-to-date basis, TTWO has retreated approximately 9%.
The company posted a net loss of $34.1 million, translating to 18 cents per diluted share. This represented a smaller loss compared to the Street’s 20-cent consensus projection. Financial results incorporated a $43.4 million impairment charge related to a cancelled, previously unannounced gaming title.
Adjusted earnings before interest, taxes, depreciation and amortization fell 26% year-over-year to $167 million.
Recurring consumer spending, encompassing microtransactions, downloadable content, and in-game currency purchases, edged down 1% from the year-ago period. This revenue stream accounted for 84% of total net bookings. Primary drivers included NBA 2K, Grand Theft Auto Online, Toon Blast, Match Factory, and Empires and Puzzles.
Platform Performance Shows Divergence
Net bookings from console platforms advanced 11% to $525.2 million, outpacing the analyst estimate of $480.2 million. Mobile represented a softer area, contracting 7% to $739.5 million and falling more than $20 million short of the $763.4 million projection.
The platform breakdown reveals a distinct narrative. Console activity is accelerating in anticipation of GTA VI, while the mobile segment remains under pressure.
All Eyes on Grand Theft Auto VI
The primary focus remains on Grand Theft Auto VI, which is slated for a November 19 release. Pre-order availability commenced on June 25. The franchise’s previous installment, GTA V, has moved over 200 million units since its 2013 debut and continues generating consistent income through GTA Online, creating enormous anticipation for the upcoming title.
Chief Executive Strauss Zelnick characterized the first quarter performance as evidence of disciplined execution throughout the organization’s publishing labels and highlighted the November release as a significant forthcoming event.
Looking to the second quarter, Take-Two projected net bookings in the range of $1.62 billion to $1.67 billion. The midpoint of $1.645 billion sits substantially below the analyst consensus of $1.79 billion.
The company reaffirmed its full-year FY2027 net bookings forecast of $8.0 to $8.2 billion. Wall Street had been anticipating figures closer to $8.62 billion.
While the disparity between company guidance and analyst expectations is substantial, Take-Two has historically employed conservative forecasting strategies preceding major product launches. The management team typically awaits initial sales performance data before adjusting projections upward.
GTA VI pre-orders have been available for approximately six weeks, with the November 19 launch date remaining firmly on schedule.
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